Displacement, Structure and Fair Value Gap
Recognize directional repricing and use a relevant FVG only after price confirms the intended delivery.
Liquidity Lab notes
Build the framework.
Directional price delivery should show urgency through displacement or a meaningful structural shift.
A directional Fair Value Gap formed during the active window can become an execution area when it supports the identified draw.
The execution concept is retracement into the FVG after directional delivery, while respecting candle bodies, repricing, and current structure.
A liquidity sweep can add context, but it is not taught here as a universal requirement before every entry.
The first FVG is not automatically mandatory. A later imbalance may become cleaner if the original area becomes unsuitable.
Key rules
Require directional evidence, not merely a large candle.
Connect the FVG to the active window and the draw on liquidity.
Reassess whether the imbalance remains suitable before entering.
Common mistakes
Trading every FVG inside the hour.
Treating a minor structure cross as meaningful displacement.
Assuming the first FVG must always be traded.
Liquidity Lab practice interpretation
Knowledge check
What makes an FVG relevant to this model?
Reveal answer
It forms within directional delivery during the active window and supports the identified draw on liquidity.